RESOLUTION
AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2006 PROGRAM YEAR,
AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR HOME FUNDS
AND AUTHORIZING CONTRACTS.

BY
COUNCILOR GILBERT:

WHEREAS,
City Council Resolution No. 05-0854, adopted December 19, 2005, approved
the FY 2006 action plan portion of the Duluth consolidated plan for housing
and community development FY 2005-2009; and

WHEREAS,
the secretary of HUD is authorized to make grants to cities and/or counties
to finance local community development programs, approved in accordance
with the provisions of Title I of said act, as well as grants under the
Cranston-Gonzales National Affordable Housing Act of 1990, as amended,
(the HOME program) and the Stewart B. McKinney Homeless Assistance Act
of 1987, as amended (the emergency shelter grant - ESG - program).

NOW,
THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized
to make and submit appropriate documentation to HUD for those projects
and corresponding funding levels as set forth below:

2006
HOME PROGRAM - FUND 260, PROJECT CD06HM

SUB

PROJECT

ACTIVITY

PROJECTS

AMOUNT

GN06

1734

MURL
housing program - HRA

$
92,460

GN06

2271

New
construction - NCLT City Homes Phase V

$192,460

GN06

1735

Homeowner
property rehabilitation - HRA/NCLT

$242,450

GN06

4143

Supportive
housing development - ASI

$
42,460

GNO6

AD01

Program
administration

$
76,600

CH06

2270

City
Homes - Phase VI pre-development - NCLT

$
16,000

CH06

1050

Technical
assistance for CHDO - AICHO

$
9,300

CH06

1226

San
Marco Apartments - CCHC

$123,346

CH06

2805

Pre-development
- WCDO

$
13,000

Total

$808,076

BE IT FURTHER RESOLVED, the following are
hereby designated as the financial sources for the above program:

Year
2006 HOME grant

$766,190

Program
income - HOME

41,886

Total

$808,076

BE
IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized
and directed to assume full responsibility for assuring that its community
development program is carried out in full compliance with the provisions
of the acts implementing the programs and all regulations of HUD issued
pursuant thereto. This authorization shall also apply to existing programs
with the city and HUD under the HUD CDBG, HOME and ESG programs.

BE
IT FURTHER RESOLVED, that the appropriate city officials are authorized
to execute the appropriate agreements with these agencies upon receipt
of approval of HUD funds.

STATEMENT
OF PURPOSE: This resolution reflects comments from organizations
and citizens as related to funding for the home investment partnerships
program (HOME). In addition to citizens, the neighborhood forums and the
community development committee (CD committee) each played a role in the
recommendations contained in the resolution. There was also a 30-day public
comment period from November 4, 2005, to December 5, 2005, on the 2006
annual action plan, which includes recommended funding for the 2006 CDBG,
HOME, and ESG programs. The CD committee held a public hearing on December
6 to hear comments on the funding recommendations and then modified its
initial amounts to reflect those comments. The final recommendations were
approved on December 6, 2005, with the concurrence of the community development
manager.

Source
of funds:

$
766,190in new 2006 HUD HOME funds

41,886in
program income

$
808,076

The
resolution, in addition to authorizing application for grant funds and
administration of same when received, also takes the following actions:

(a)Allocates
funds by project for the 2006 HOME program.

(b)Authorizes
contracts for the activities upon receipt of funding contract.

Contracts
will have the appropriate addendums for affordability restrictions and
recapture or resale provisions to ensure compliance with HUD regulations.

The
following projects are recommended for funding in the FY 2005 HOME program:

06-HM-01

Project
Name: MURL Program Matching Funds - Duluth HRA

Project
Summary: HRA purchases vacant condemned and blighted homes, completes
major rehabs of the properties, and sells them to income eligible homebuyers
who don’t qualify for a bank financed mortgage using a Contract
for Deed. Target areas are the CDBG eligible neighborhoods. Homeowner
payments are paid into a fund used to buy and rehab additional blighted
properties.

Location:
222 East 2nd Street

Goal:
Purchase, rehab and resell 3 homes

Amount
Recommended: $92,460

06-HM-02

Project
Name: Duluth Property Rehabilitation Program

Project
Summary: Duluth Housing & Redevelopment Authority (HRA) and Northern
Communities Land Trust (NCLT) provide rehab loans and assistance to homeowners.
The NCLT works with homebuyers in their Homeland program, and the HRA
manages the rehab portion of that program. This program also received
CDBG funding.

Location:
222 East 2nd Street

Goal:
15 single-family owner-occupied rehabs

Amount
Recommended: $242,450

06-HM-04

Project
Name: Minnesota Supportive Housing Development Project Summary: Accessible
Space, Inc., will construct a 21 unit (one for an onsite employee) apartment
building, 15 one bedroom and 6 two bedroom units. The building will be
two story slab on grade with central elevator, and serve as an independent
living facility for 20 persons with a variety of physical disabilities.

Location:
Maple Grove Road (between Eklund & North Robin Avenue)

Goal:20
Households

Amount
Recommended: $42,460

06-CD-01

Project
Name: Project Development

Project
Summary: American Indian Community Housing Organization (AICHO) will conduct
pre-development activities directly leading to the creation of culturally
specific permanent supportive housing for Native American families/individuals
and provide for staff training to build organizational capacity.

Location:
419 North First Avenue West, Apartment C

Goal:
1 organization

Amount
Recommended: $9,300

06-CD-02

Project
Name: Project Development

Project
Summary: Northern Communities Land Trust will conduct pre-development
activities to continue to provide affordable housing for low/mod income
households through the development of new housing units.

Location:
206 West 4th Street

Goal:
1 organization

Amount
Recommended: $16,000

06-CD-03

Project
Name: Affordable Housing Pre-Development

Project
Summary: Pre-development funding for housing project planning, fundraising,
site search and acquisition activities by the Women’s Community
Development Organization. New project development is part of a strategic
plan for self-sufficiency by the agency.

Project
Summary: Center City Housing Corporation will construct 70 single-room
occupancy housing units. Thirty of the units will be for permanent supportive
housing for chronically alcoholic individuals, and 40 will replace units
currently in the Gardner Hotel.

Location:
2nd Avenue West and 3rd Street

Goal:
70 SRO housing units

Amount
Recommended: $123,346

06-CH-02

Project
Name: City Homes

Project
Summary: Northern Communities Land Trust (NCLT) will construct 8 new housing
units using $200,000 of HOME funds. The new units will be sold to income
qualifying homebuyers. (NCLT will also construct 3 new housing units on
the sites cleared through CDBG demolition activities.) The HOME funds
will provide gap funds for the projects.